Star Xu recalls calling Ethereum a shitcoin in 2017

• Star Xu, OKX founder, recalled telling Vitalik Buterin in 2017 that Ethereum was a shitcoin.
• ETH climbed near 5% in 24 hours to about $2,701, driven by short liquidations and retail FOMO.
• Our read: a retail-fueled bounce inside a bearish macro trend, with smart money still holding USDT.

Star Xu once called Ethereum a shitcoin and told Vitalik so to his face. Now ETH is surging while retail turns euphoric again. Is this rally smart money or the same old trap?

OKX founder Star Xu just reminded everyone how easy it is to misread a winner. In a September 11, 2026 interview, he recalled the moment Vitalik Buterin approached him in 2017 about listing Ethereum. His answer back then was blunt. He called Ethereum a shitcoin to the co-founder's face.

Ethereum had already launched in 2015. It went on to become the programmable blockchain that hosts smart contracts and decentralized applications, or dApps. Vitalik, one of its co-founders, has since reaffirmed his commitment to Ethereum privacy. Developers are now exploring private reads, private transactions, and shielded transfers. The shitcoin, in other words, kept building.

Markets have a sense of humour about these things. The same OKX ecosystem that once dismissed Ethereum now carries a feed of users cheering its every green candle.

On OKX Orbit, one user posted about being overwhelmed watching Ethereum surge. Another admitted almost believing in the rebound. They watched ETH climb from $2436. That emotional tone matters more than the anecdote itself, because it tells you who is buying this move and why.

Star Xu's old miss is a clean lesson against dismissing new technology. But the more useful signal today is the crowd repeating an older mistake: chasing strength late.

A 2017 misjudgment echoed by today's greed

This story matters because conviction and price rarely move together. An expert can be certain and wrong, and a crowd can be right for entirely the wrong reasons. Star Xu misjudged Ethereum in 2017. Today's buyers may be misjudging it again, only in the opposite direction, treating a bounce as a trend.

Zoom out to the macro picture and the transmission becomes clearer. Our overall bias stays bearish on the weekly. We have not yet seen a true capitulation phase, where Net Unrealized Profit and Loss (NUPL) drops below zero. Without that flush, the market lacks the cleared-out base that durable bottoms are built on.

Sentiment is running hot into that unfinished setup. The Fear and Greed Index sits at 80, deep in extreme greed. That reading is not a green light. Historically, extreme greed marks the zone where late money arrives and early money quietly leaves.

So the anecdote and the tape rhyme. In 2017, emotion said avoid a builder that lasted. In 2026, emotion says chase a rally before the macro trend has confirmed. Both are feelings dressed up as analysis, and both tend to age badly.

Retail buying while smart money sits in USDT

Follow the liquidity and the surge looks thinner than the price implies. ETH jumped nearly 5% in 24 hours to around $2,701. Much of that fuel came from short liquidations, not fresh spot conviction. When forced buying drives a move, the demand can vanish as quickly as it appeared.

BTC sets the ceiling for everything below it. Bitcoin was trading near $83,962 as of 09:12 UTC, up 4.6% on the day. That places it right inside heavy daily resistance. Until BTC clears and holds that zone, ETH strength is borrowing against a market still pinned by its leader.

Ethereum is showing the cleanest short-term strength of the group. That is normal in a relief bounce, where the most-shorted names snap back hardest. It is not the same as leadership. It is elasticity.

Alts sit at the end of this chain and carry the most risk. They rally last, thinly, and unwind first when BTC rolls over. Right now the macro tape still points down. So a broad, sustained alt expansion has the odds against it while smart money waits patiently in USDT.

Whether $2436 holds and BTC clears resistance

The line between a real shift and a trap is follow-through. We are watching whether BTC can reclaim the $82,000 to $84,000 daily resistance and actually hold above it. A clean daily close through that zone with continuation would force us to respect the move. A stall there keeps the bearish read intact.

Momentum has to confirm alongside price. On the daily, the Relative Strength Index needs to retest its moving-average trend line as support and then tick up. So far price has printed equal highs while momentum lagged, a bearish divergence that warns of a hollow push.

For ETH specifically, the $2436 launch pad of this move is the first tell. Hold above it and the bounce stays alive. Lose it and the short-covering fuel is spent, which usually hands price back to sellers.

The bigger confirmation is structural, not a single candle. A genuine macro bottom needs that capitulation flush, NUPL below zero, the moment retail finally gives up. Until we see it, we treat rallies as chances to reassess, not proof the trend has turned. Extreme greed rarely rings the bell for a fresh bull leg.

Extreme greed meets the $84,000 ceiling

At $83,962 as of 09:12 UTC, Bitcoin is sitting exactly where the ParadiseTeam expects supply, inside the $82,000 to $84,000 daily resistance. A liquidation cluster near $83,400 sits right in that band. Price is drawn to those pooled stops, which explains part of today's push more honestly than any headline does.

Map the players onto this and the ETH move reads as distribution risk. This bounce ran from $2436 into resistance while retail turned euphoric at a Fear and Greed of 80. That is the classic profile of smart money feeding coins to late buyers, not accumulating. The spot money that already distributed is holding USDT, waiting lower.

Stops tell the same story. Short sellers just got run, which fed the squeeze. Now fresh longs are chasing, and their stops sit below $2436 and below the recent range. That is a pool sellers can target if macro pressure resumes.

For risk-to-reward (R:R), the ParadiseTeam sees a poor long here into resistance without confirmation. The read flips only if BTC reclaims $82,000 to $84,000 with follow-through and NUPL finally flushes below zero. Defended support sits at $75,000, with an expected macro bottom far lower near $44,000. Patience beats FOMO here.

The read behind this: we framed this story through our own market analysis, Can Bitcoin Break Resistance This Time?

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